---
title: "Chinese Consumers Become More Prudent Amid Pandemic"
description: "According to Accenture's 2022 China Consumer Insights report, Chinese consumers are becoming more prudent and willing to spend on areas that bring long-term value, driven by long-term trends and the pandemic's impact."
author: "陶紫东"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2022-08-15"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/chinese-consumers-become-more-prudent-amid-pandemic-76033608/"
markdown: "https://xinjignxiao.com/en/articles/chinese-consumers-become-more-prudent-amid-pandemic-76033608.md"
original_source: "https://mp.weixin.qq.com/s/T2nxpq7hCh7G0VyvkTDVoQ"
translation: "https://xinjignxiao.com/zh/articles/%E7%96%AB%E6%83%85%E4%B8%8B-%E4%B8%AD%E5%9B%BD%E6%B6%88%E8%B4%B9%E8%80%85%E5%8F%98%E5%BE%97%E6%9B%B4%E5%AE%A1%E6%85%8E-76033608.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/chinese-consumers-become-more-prudent-amid-pandemic-76033608/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Chinese Consumers Become More Prudent Amid Pandemic

> According to Accenture's 2022 China Consumer Insights report, Chinese consumers are becoming more prudent and willing to spend on areas that bring long-term value, driven by long-term trends and the pandemic's impact.

********Click to read the original article for details********
Under the combined influence of long-term trends such as development transformation, generational changes, and technology penetration, as well as the current pandemic, Chinese consumers are becoming more prudent and more willing to increase spending in areas that bring long-term value—this conclusion comes from the "2022 China Consumer Insights" series (hereinafter referred to as the "Report") recently released by consulting firm Accenture. The series focuses on the overall consumer market and lower-tier markets, conducting research and analysis through a combination of quantitative and qualitative methods.
Over the past 40 years, China's consumer market has flourished. Since 2014, consumption has been the primary driver of China's economic growth for six consecutive years. In 2019, per capita GDP exceeded $10,000, achieving a historic breakthrough; in the same year, total retail sales of consumer goods exceeded 40 trillion RMB, making China the world's second-largest consumer market.
In 2020, due to the pandemic's impact, consumption saw negative growth, but it still accounted for 54.3% of China's GDP, and its contribution to economic growth rebounded quarter by quarter. In 2021, final consumption expenditure contributed 65.4% to economic growth, driving economic growth by 5.3 percentage points. **Consumption has become the main driving force for the stable recovery of the national economy.**
**A new change is that with the slowdown in the growth of residents' disposable income, residents' consumer spending has shrunk, and the proportion of consumer spending to income—that is, residents' consumption propensity—has weakened, leading to a year-on-year slowdown in total consumption growth.**
Affected by the pandemic and other factors, people's risk awareness has increased, and precautionary savings have risen. In 2020, residents' consumption propensity fell to a historical low of 62%, while per capita deposits increased by 7,500 RMB year-on-year. In 2021, consumption propensity rebounded to 64%, but it remained below pre-pandemic levels.
The Report points out that as people's living standards improve, the definition of value continues to expand. While focusing on functionality and cost-effectiveness, consumers are also increasingly pursuing quality, brand identity, and the experience during the purchase process. The pandemic has prompted people to reflect on the meaning of consumption. **People have begun to view consumption with an investment mindset—the value of goods or services is not just the immediate experience and enjoyment, but also the future returns.**
**01** **Five Major Trends in Consumption Concepts and Patterns**
The Report's survey results show that in recent years, Chinese consumers' consumption concepts and patterns have presented five major trends: **"Me" economy, new rationalism, being the master of time, symbiosis with technology, and sustainable prosperity.**
The "Me" economy in the Report refers to consumers' growing self-awareness and increased focus on internal needs. With the proliferation of smart devices and the in-depth and diversified development of e-commerce platforms, the original collective family decision-making has begun to break down, and decision-making power in household consumption has returned to individuals. Each family member has a stronger influence on the items they use, or directly obtains decision-making power.
**On the other hand, consumption has become an important outlet for people to shape their personal style.** In Accenture's 2013 consumer survey, 45% of respondents already "were willing to increase spending to buy products that better reflect their personal identity." In 2021, this proportion further rose to 56%, and among those with a monthly income of over 20,000 RMB, more than 70% said they were willing to pay a premium to showcase their social status.
Interestingly, compared to 2013, the proportion of respondents who "don't mind buying the same things as most people" has risen significantly, from 38% in 2013 to 69% in 2021, indicating that when making shopping decisions, consumers value their internal needs more than external opinions and evaluations. The starting point for showcasing personal style is no longer "being different from others," but "I like it" and "I am willing."
"New rationalism" is also a consumption trend mentioned by Accenture in the Report. Since the pandemic, consumers have been more strictly examining their needs, focusing on the essence of goods, and seeking the most suitable options among multiple brands and channels. While pursuing novelty, they also pay more attention to a sense of meaning.
Under the impact of the pandemic, people's consumption concepts have undergone a huge transformation, becoming more pragmatic and restrained. The Report shows that in 2021, more than 90% of respondents disagreed with the "moonlight clan" (spending all income), an increase of 30 percentage points compared to 2017. Nearly 80% of respondents said "most of the products they buy are used frequently," an increase of nearly 20 percentage points compared to 2017.
**Consumers' attitudes towards the past "carnival" online shopping festivals are also changing.** In the June 2021 China consumer survey, 60% of respondents said they participated in the 6·18 shopping festival, of which 80% bought items they originally wanted to buy, just placing orders during 6·18. Among those who did not participate in the 6·18 shopping festival, 60% said it was because they "didn't want to make impulsive purchases."
In addition to curbing impulses and reducing unnecessary spending, people research the products they want to buy more deeply and thoroughly. For example, in the Chinese market, which is crowded with various beauty products, a consumer group calling themselves "ingredient party" has emerged. The safety and efficacy of skincare products have become the focus of these rational consumers.
**As a result, it is increasingly difficult for brands to maintain consumer loyalty.** The Report shows that 80% of respondents "have recently tried new brands," 45% said "the frequency of trying new brands has increased in the past year," and 90% have tried at least one new type of consumption channel, such as live-streaming e-commerce, fresh food e-commerce, community group buying, and streetwear communities.
For large brands with deep brand heritage and strong R&D and supply chain capabilities, in the extremely diverse and rapidly changing Chinese market, facing Chinese consumers who are skilled at and enjoy researching product characteristics, in addition to making good products and meeting people's real needs, they must also deliver high-quality content through information channels that target consumers follow. Only then can they leave a deeper brand impression in every "research" and "comparison," thereby accumulating brand awareness and ultimately achieving sales growth.
Another noteworthy trend keyword is "technology" and "sustainability." The Report points out that **more consumers desire human-centered technology applications and are willing to fulfill green commitments.** 70% of respondents said they are willing to share personal data for better services, while 50% believe that the frequency of ad pushes is too high; almost all Chinese respondents recognize the value of environmental protection and sustainable development, and 43% said they are willing to pay a premium for environmentally friendly products.
**02** **Consumption Demand in Lower-Tier Markets Needs Further Exploration**
Due to China's large population, regional differences in disposable income and the availability of goods and services, consumption propensity varies significantly among cities of different tiers. The Report mentions that respondents in markets below the third tier have significantly lower willingness to invest in savings/financial management, medical/insurance, children's education, and exercise and fitness compared to respondents in first- and second-tier cities, while their willingness to increase spending on shopping, dining, personal education, and leisure and entertainment is higher than that of first- and second-tier respondents.
"We observed that the five major trends in the Report also exist in consumer markets of different tiers. However, at the same time, under the influence of some internal and external conditions, such as consumer factors including disposable income, disposable time, family structure, and social relationships, as well as external factors like the availability of goods and services, these trends show differences among cities," Accenture explained to Yicai YiMagazine.
For example, **the "new rationalism" trend is very obvious in lower-tier markets, with unique manifestations.** Compared to first- and second-tier cities, consumers in lower-tier markets are more reluctant to be "moonlight clan," value practicality more, and are more enthusiastic about comparing. On average, in lower-tier markets, 59.8% of consumers' personal/household income is allocated to daily consumption; 11.8% is used for asset investment, and 28.4% for financial investment. 70% of respondents said that daily household expenses account for more than 50%, with food and beverages and clothing and footwear being the main consumer categories, at 62.8% and 74.4%, respectively.
**Interestingly, consumers in lower-tier markets are very willing to pay for appearance.** Nearly 80% of respondents in lower-tier markets said that the appearance design of products stimulates their shopping interest. Price is no longer the primary attraction; appearance is the first priority.
The uniqueness of consumers in lower-tier markets is also reflected in their attitude towards technology products. The Report shows that compared to the 2017 China consumer survey data, the penetration rate and interest in smart home appliances have significantly increased. In 2021, more than 60% of respondents had purchased smart home appliances, and half of them used them frequently. Although consumers in lower-tier markets also showed strong interest in similar products, the current penetration rate is not high.
The Report points out that **the lower-tier market is not a mid-to-low-end market; companies must view this "blue ocean" with new eyes.** "With the acceleration of new urbanization, the increase in residents' income levels, and the acceleration of infrastructure construction such as channels, the demand of consumers in lower-tier markets for smart products, service-oriented consumption, and green consumption will be further released," Accenture told Yicai YiMagazine.
Source: Yicai YiMagazine
(ID: CBNweekly2008)
 _**-END-**_


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671